please do question 10. a and b and question 19 c Question 10A single person living away from home and looking for a job qualifies for a government allowanceof $485.50 per fortnight, provided their fortnightly income is no more than $150.In any fortnight that such a person earns more than $150, the allowance will reduce by 50 centsfor each dollar of income they have between $150 and $250. If their income is over $250, thepayment will further reduce by 60 cents for each dollar of income over $250.Ann qualifies for the allowance. Each week she works two, 3-hour shifts and one, 5-hour shift ata hotel that pays $21.50 per hour.(a)Calculate her fortnightly earnings.(b)Determine her fortnightly government allowance. Question 19Mark bought a painting as an investment at an auction for $15 500. The auction house chargedMark a handling fee of 0.75% of the sale price.(a) Determine the handling fee paid by Mark.One year later, Mark sold the painting through a gallery for $20 900. The gallery charged Mark acommission of 24% of the sale price.(b) Determine the net profit made by Mark, after he had paid the handling fee and salescommission.At the time Mark bought the painting, he could have placed the money he paid for it (including thehandling fee) in a 12 month term deposit that offered an interest rate of 2.7% compoundedmonthly.(c) Determine whether the term deposit would have been a better investment for Mark.

Question 10 pertains to calculation of allowance in situation of varying earnings. The allowance is…

Answered: At the time Mark bought the painting,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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tudent question Time to preview question: 00:09:37 Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $102,000, and it has claimed $33,800 of depreciation expense against the building. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount. Required: Assuming that Hauswirth receives $80,500 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $80,500, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. Assuming that Hauswirth receives $27,500 in cash in year 0 and a $88,500 note receivable that is payable in year 1, compute the amount and character of Hauswirth's…
Return on T-bills. Lauren purchased a $50,000 T-bill for $48,225. A few months later, Lauren sold the T-bill for $49,099. What was Lauren's return on the T-bill? Lauren's return on the T-bill is ______%
Problem 13NOREEN INC, a truck dealer, sells a truck on January 1, 2019, to MENDOZA INC for P3,000,000. NOREEN agrees to repurchase the truck on December 31, 2020 for P3,630,000 Using the information above, what is the interest expense for 2019?2.A. None C. 330,000 B. 300,000 D. 630,000
Page 9 & page 12! Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is determined to have commercial substance. The machine cost $30,000, has a book value of $6,000, and has a market value of $8,500. The truck has a cost of $12,000 and a book value of $8,000 on Harmes books. Goodman agrees to pay $500 to complete the exchange. Prepare journal entries for Goodman and Harmes to record the exchange
Problem 13NOREEN INC, a truck dealer, sells a truck on January 1, 2019, to MENDOZA INC for P3,000,000. NOREEN agrees to repurchase the truck on December 31, 2020 for P3,630,000. How much should NOREEN INC record interest and retirement of its liability to MENDOZAINC on December 31, 2020?None C. 330,000; 3,630,000 300,000; 3,600,000 D. 630,000; 3,630,000
question 2 Part a - Tina sold a painting on 1 July 2019 for £500,000. She purchased the painting in February 1997 for £350,000. She also disposed of a commercial investment property for £310,000 on 1 December 2019 and incurred agency fees of £15,000 on the disposal. She had purchased the property in August 1998 for £200,000. In addition, she sold an antique vase for £10,000 in January 2020 which had cost her £15,000 in September 2017. Tina had capital losses brought forward from previous tax years of £15,000. Tina’s taxable income for 2019/20 is £50,000. REQUIREMENT FOR PART A- Calculate Tina’s Capital Gains Tax for 2019/200 PART B QUESTION Jane owns shares in ABC Ltd. She acquired 1,500 shares in the company on 31 May 2016 for £20,000, and 500 shares on 30 June 2017 for £10,000. On 7 July 2020 Jane bought a further 200 shares in ABC Ltd for £4,000.Jane sold 1,000 shares in ABC Ltd on 28 June 2020 for £25,000. She is not an employee of ABC Ltd. REQUIREMENT FOR PART B: Calculate…
Problem 13-85 (LO. 8) Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2020, at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, 2020, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7, 2020. The closing statement showed the following disbursements: Real estate agent's commission $21,780 Appraisal fee 600 Exterminator's certificate 300 Recording fees 800 Mortgage to First Bank 305,000 Cash to seller 34,520 Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2020, Wesley purchases another residence for $325,000. If an amount is zero, enter "0". a. Calculate Wesley's recognized gain on the sale.$fill in the blank 89a3d703a067018_1 b. What is Wesley's adjusted basis for the new residence?$fill in the blank…
Note 1 – Sale of product with right of return On 1 April 20X7 Delta sold a product to a customer for $121,000. This amount is payable on 30 June 20X9. The manufacturing cost of the product for Delta was $80,000. The customer had a right to return the product for a full refund at any time up to and including 30 June 20X7. At 1 April 20X7, Delta had no reliable evidence regarding the likelihood of the return of the product by the customer. The product was not returned by the customer before 30 June 20X7 and so the right of return for the customer expired. On both 1 April 20X7 and 30 June 20X7, the cash selling price of the product was $100,000. A relevant annual rate to use in any discounting calculations is 10%. Explain and show how the transactions in notes 1 and 2 would be reported in the financial statements of Delta for the year ended 30 September 20X7.
Problem 6 Purchased building by issuing 15%, P1, 500, 000 face value bonds. On the date of acquisition, the fair value of the building is P2, 200, 000 while the bonds are quoted at 109.Journal entry to record the purchase:what is the rule in solving the problem?
Problem 19-07 (Part Level Submission) Pharoah Corp. sold an investment on an installment basis. The total gain of $86,400 was reported for financial reporting purposes in the period of sale. The company qualifies to use the installment-sales method for tax purposes. The installment period is 3 years; one-third of the sale price is collected in the period of sale. The tax rate was 40% in 2020, and 20% in 2021 and 2022. The 20% tax rate was not enacted in law until 2021. The accounting and tax data for the 3 years is shown below. Financial Accounting Tax Return 2020 (40% tax rate) Income before temporary difference $100,800 $100,800 Temporary difference 86,400 28,800 Income $187,200 $129,600 2021 (20% tax rate) Income before temporary difference $100,800 $100,800 Temporary difference 0 28,800 Income $100,800 $129,600 2022 (20% tax rate) Income before temporary…
Hw.25. Sale Of Principal Residence Ms. Jan Sadat owns a house in Ottawa as well as a cottage in Westport. She purchased the house in 2009 for $126,000. The cottage was gifted to her in 2012 by her parents. At the time of the gift, the fair market value of the cottage was $85,000. During June 2020, both properties are sold, the house for $198,000 and the cottage for $143,500. She has lived in the Ottawa house during the year, but has spent her summers in the Westport cottage. Determine the minimum capital gain that she must report on the 2020 sale of the two properties.
Problem 12 On January 1, GEN enters into a contract with LORD for the sale of a high-end security scanner for P630,000. The contract includes a put option the obliges GEN to repurchase the scanner machine from LORD for P567,000 on or before December 31. The market value is expected to be P495,000 on December 31. LORD pays GEN P630,000 on January 1. The transaction should be accounted for as a: A. Sale C. No sale/lease B. Lease D. Cannot be determined Problem 13 Noreen INC a truck dealer, sells a truck on January 1, 2019, to Mendoza for P3,000,000. Noreen INC agrees to repurchase the truck on December 31, 2020 for P3,630,000. 1. Assuming a 10% is imputed in the agreement, how much is the liability of Tom Co on January 1, 2019? A. 1,500,000 C. 3,000,000 B. 1,815,000 D. 3,630,000 2. Using the information above, what is the interest expense for 2019? A. None C. 330,000 B. 300,000 D. 630,000 3. How much should NOREEN INC record interest and retirement of its liability to MENDOZA INC…

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At the time Mark bought the painting, he could have placed the money he paid for it (including the handling fee) in a 12 month term deposit that offered an interest rate of 2.7% compounded monthly. (c) Determine whether the term deposit would have been a better investment for Mark.